Hyundai, Dangote Sinotruck, Honeywell, Others Enjoy Nigeria's Tax Holiday
Forty-eight companies, amongst them shopping malls, were awarded tax holiday in 2020.
Forty-eight companies were awarded tax holiday in 2020, according to the Nigerian Investment Promotion Commission.
The federal government gives companies in critical sectors of the economy tax holiday, also known as the Pioneer Status Incentive, to encourage and attract investment into sectors that could significantly impact development and deliver key benefits to the country.
The incentive, provided under the Industrial Development Income Tax Relief Act, grants benefitting firms relief from the payment of corporate income tax for an initial period of three years, extendable for one or two additional years.
The NIPC, on the authority of the Minister of Industry, Trade, and Investment, processes the PSI applications and, on the authority of the president, approves and extends them. The agency issues the pioneer certificates and can also cancel them if the provisions of the law and some set guideline documents are contravened.
According to the PSI report of the third quarter of 2020, 34 companies are currently enjoying tax relief under the pioneer incentive. These companies have about 9,678 staff and have helped in reducing the rate of unemployment in the country.
Seven other companies also enjoyed a tax holiday in 2020, but their certificates expired at the end of the year. They can apply for an extension for one or two additional years.
According to the NPC, the following are the current beneficiaries of the incentive:
Kunoch Hotels Limited
The hotel was registered with the Nigerian Corporate Affairs Commission on May 3, 2012, with the RC number: 1030799.
Operating in Lagos, the company is into hotel development and has 65 staff, and has invested about N3 billion so far.
Its certificate expires on the last day of 2021.
Amarava Agro Processors Limited
The rice milling company has 242 staff and has invested N2.9 billion so far.
Its certificate expires by September 30, 2022.
Registered on February 25, 2016, with the RC number 1318319, it listed Sriram Venkateswaran and Swaminathan Ramasubbu as its directors.
Maindata Nigeria Limited
Investing N4.2 billion and with 312 staff, the data centre and cloud-hosting company registered its company on January 10, 2014 (RC 1164042).
Its pioneer incentive certificate expires on the last day of 2022. It listed Folu Aderibigbe and Kehinde Olaleye-akin as its directors.